Gome seals China Paradise takeover deal
By Wang Xu (China Daily)
Updated: 2006-07-26 08:36
China's biggest home appliance retailer, Gome Electrical Appliance Holding
Ltd, finalized its HK$5.27 billion (US$675.64 million) deal to acquire its rival
China Paradise Electronics Retail Ltd yesterday, better positioning the firm to
ward off foreign competition in the sector.
Gome chief executive officer Huang Guangyu
(L), and China Paradise chairman Chen Xiao, shake hands during a news
conference in Beijing on July 25, 2006.
[Reuters] |
Gome agreed to pay HK$409 million
(US$52.44 million) and one new share for every 3.08 shares in China Paradise,
the company said at a press conference held last night.
The deal values
China Paradise at HK$5.27 billion (US$680 million), which represents a 9 per
cent premium at China Paradise, based on the closing price of the two companies.
Gome Chairman Huang Guangyu, ranked China's richest businessman last
year, will remain as chairman of the new company. Current China Paradise
Chairman Chen Xiao will become the merged company's chief executive
officer.
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